PHILIPSBURG–The St. Maarten Hospitality and Trade Association (SHTA) says St. Maarten needs to “get serious” about a number of issues.
SHTA said recent reports provide “clear warning messages” and concrete recommendations for St. Maarten’s future.
“If there is one thing that is consistently lacking in our endeavours as a country post-2010, made even more apparent in the efforts toward recovery from the 2017 hurricane season, that is strong and realistic leadership. 2019 is the time to have the branches of government, the executive and the legislative, finally step up to the plate and work on providing a better future for its people,” SHTA contended.
Government finances is one of the areas about which SHTA believes the country needs to get serious. It alluded to the General Audit Chamber’s scathing report about government’s finances.
“This time we suggest that Parliament have an extensive debate with the Minister of Finance about specific short- and long-term goals that need to be achieved and reported on to Parliament. The last two specific areas audited by the Audit Chamber revealed that in both instances clear guidelines are absent (tendering process) or are not adhered to (advance payments to ex-political appointees).
“In addition, reports issued by the Raad voor de Rechtshandhaving should be debated and result in clear goals to be achieved to strengthen law and order on the island. Parliament needs to take its role as controller of the executive branch seriously,” SHTA said.
It believes the country also has to get serious about fiscal matters.
“Parliament needs to adopt the changes of the law to enable the fiscal authority to exchange information (common reporting standard) post-haste. St. Maarten has signed the CRS [common reporting standard – Ed.] treaty and needs to be compliant if it does not want to run the risk to be placed on the EU/OECD [European Union/Organisation for Economic Cooperation Development] blacklist or even worse, lose inter-banking relationships. Both would be detrimental for the investment climate of St. Maarten,” SHTA said.
It said the country also needs to get serious with respect to tax reform. The difference between corporate tax rates applicable in the Caribbean Netherlands islands, Curaçao, Aruba and surrounding islands is getting bigger, to the disadvantage of St. Maarten.
“A shift from direct to indirect taxes is inevitable. Waiting too long significantly damages the investment climate and puts pressure on government’s tax revenues.
“Enforcement, enforcement, enforcement – those are the three most important things government must do to ensure it has sufficient revenues (well-equipped and -manned fiscal authority with a robust audit department and collection organisation) and that residents (individuals and organisations alike) comply with the laws of the land. Government can no longer sit back and remark that people and organisations need to comply with the law, it must force its residents to comply.”
According to SHTA, St. Maarten must also accept that the human resource pool available to a small society sometimes means that a crucial function cannot be fulfilled by a local candidate.
“Embrace the offer made by the Netherlands/World Bank/European Investment Bank with respect to the redevelopment of the [Princess Juliana International] Airport. This is a vital part of our infrastructure that can use both the expertise offered [Schiphol Management] as well as the free/low interest funds made available,” it said.
Source: The Daily Herald https://www.thedailyherald.sx/islands/84786-shta-says-country-needs-to-get-serious-on-issues-in-2019
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